Developing the Food, Water, and Energy Nexus for Food and Energy Scenarios with the World Trade Model
2021
Ignacio Cazcarro | Naci Dilekli
The food, energy, and water (FEW) nexus has gained increased attention, resulting in numerous studies on management approaches. Themes of resource use, and their subsequent scarcity and economic rents, which are within the application domain of the World Trade Model, are ripe for study, with the continuing development of forward- and backward-facing economic data. Scenarios of future food and energy demand, relating to supply chains, as well as direct and indirect resource uses, are modelled in this paper. While it is possible to generate a substantial number of economic and environmental scenarios, our focus is on the development of an overarching approach involving a range of scenarios. We intend to establish a benchmark of possibilities in the context of the debates surrounding the Paris Climate Agreement (COP21) and the Green New Deal. Our approach draws heavily from the existing literature on international agreements and targets, notably that of COP21, whose application we associate with the Shared Socioeconomic Pathway (SSP). Relevant factor uses and scarcity rent increases are found and localized, e.g., on the optimal qualities of water, minerals, and land. A clear policy implication is that, in all scenarios, processes of energy transition, raw material use reduction, and recycling must be strengthened.
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